(3) Charges for the expense of special services relating to or in connection with proceedings before referees shall be made and collected by the referees in accordance with regulations to be prescribed by the Director, with the approval of the conference, and the proceeds shall be paid by the referees to the clerk for transmission to the Treasury of the United States for deposit in the referees' expense fund.

(4) A referees' salary fund and a referees' expense fund shall be established in the Treasury of the United States, and the amounts of the various fees and allowances collected by the clerks for the services of referees, and for their expenses, including the fees, allowances and charges for their services and expenses as conciliation commissioners and as special masters under this Act, shall be covered into the Treasury of the United States for the account of such salary fund and expense fund. The salaries of the referees in active service shall be paid out of annual appropriations from such salary fund, and the expenses of the referees, including the salaries of their clerical assistants, shall be paid out of annual appropriations from such expense fund, by the United States. Any deficiencies of such salary fund or expense fund shall be paid out of any funds in the Treasury of the United States not otherwise appropriated, and appropriations to pay such deficiencies are hereby authorized: Provided, however, That there shall be covered into miscellaneous receipts of the Treasury of the United States in any subsequent year so much of the surplus, if any, arising in the salary fund or expense fund respectively as may be necessary to reimburse the Treasury of the United States for payments made on account of such respective funds in any prior year.

(5) As of the day preceding the date when the referees, as provided by paragraph (2) of subdivision b of section 37 of this Act, are to take office, an allocation shall be made by the judge or judges of the several courts of bankruptcy of all filing and other fees, commissions, and allowances, and of all expense funds, due the then existing referees for services rendered and expenses incurred in the cases pending before them, whether as referee, conciliation commissioner, or special master under this Act. The balances of such filing and other fees, commissions, and allowances and the expense surpluses shall be covered into the Treasury of the United States by the referees and the clerks, to be deposited to the credit of the respective salary and expense funds. All cases pending before outgoing referees shall be rereferred, and no additional filing fees shall be required, but additional salary and expense charges may be assessed in such cases in such amounts as the judge or judges of the several cow ts of bankruptcy may deem equitable, taking into consideration the schedules of additional fees fixed by the Director and the payments previously made therein.

50 di (1) All referees in bankruptcy and employees in the ofIfices of such referees shall be deemed to be officers and employees in the judicial branch of the United States Government within the meaning of section 3 of the Civil Service Retirement Act of May 29, 1930, as amended.

(2) Any referee who has retired or been retired under the provisions of paragraph (1) of this subdivision d may, if called upon by a judge of a court of bankruptcy, perform, without compensa'tion, such duties of a referee, conciliation commissioner or spe(cial master under this Act, within the jurisdiction of such court, as such referee may be able and willing to undertake: Provided, •however, That when so acting, compensation for his services shall be allowed and paid or deposited and his expenses shall be allowed and paid, as in the case of an active referee, ficti si

1

Salaries as set forth in subdivision a were specified by Act of May 10, 1956, ·P.L. 518, 84th Cong., 2d Sess. An intermediate salary advance was provided by Act of July 7, 1952, P.L. 457, 66 Stat. 438. Otherwise the section stands as amended by the Referees' Salary Act (1946). Tsaqli ya T‚‚¦

This section, as amended in 1938, read: "Compensation of Refereesa. Referees shall receive as full compensation for their services payable after at the time the peti

they are rendered a fee of $15, deposited with the clered from a voluntary

tion is filed in each case, except when a fee is not

Per

cent trustees or, upon confirma

bankrupt; a fee of 25 cents for every proof of claim filed for allowance, to be paid from the estate, if any, as a part of the cost of administration; and from estates, which have been administered before them, 1 per centum commissions on all moneys disbursed to creditors tion of an arrangement, one-half of 1 on the amount to be paid to creditors in respect to the composition of debts and one-half of 1 per centum on the amount of the debts whose maturity is to be extended and of the debts, if any, to be paid in full. Referees in ancillary proceedings shall receive as full compensation for their services, payable after they are, rendered, a fee of $15 deposited in each case with the clerk of the, ancillary court at the time the ancillary proceeding is instituted, and 1 per centum commission on all moneys disbursed in the ancillary proceeding to lien creditors, as well as on all moneys transmitted and, on the fair value of áll property turned over in kind, by the court of the ancillary jurisdiction to the court of primary jurisdiction. The judge may, however, by standing rule or otherwise, fix a lower rate of compensation, so that no referee shall receive excessive compensation during his term of office, and, in any case of an extension, the judge may prescribe terms and conditions for the payment of the referee's compensation.

"

"b. Whenever a case is transferred from one referee to another the judge shall determine the proportion in which the fee and commissions therefor shall be divided between the referees. vi? Þulind CHDA

"c. In the event of the reference of a case being revoked before it is concluded, and when the casé is specially referred, the judge shall deter mine what part of the fee and commissions shall be paid to the referee," The section has thus been completely rewritten, substituting salaries and salary and expense funds for the fee system.

The Act of 1898 allowed referees $10 plus 1% of sums to be paid as diyidends or commissions, or 2% of the amount to be paid creditors upon a 'composition. The amendment of 1903 raised the fixed fee to $15 and added the 25¢ fee for each claim filed. The major portion of a as enacted in 1938

'was new, including the references to arrangements instead of compositions, to commissions on extended indebtedness, to ancillary proceedings and to judges' rules restricting compensation.

Sec. 41. (11 U.S.C. § 69.)

Contempts Before Referees

a. A person shall not, in proceedings before a referee, (1) disobey or resist any lawful order, process, or writ; (2) misbehave during a hearing or so near the place thereof as to obstruct the same; (3) neglect to produce, after having been ordered to do so, any pertinent document; or (4) refuse to appear after having been subpenaed, or, upon appearing, refuse to take the oath as a witness, or having taken the oath, refuse to be examined according to law; Provided, That a person other than a bankrupt or, where the bankrupt is a corporation, its officers, or the members of its board of directors or trustees or of other similar controlling bodies, shall not be required to attend as a witness before a referee at a place more than one hundred miles from such person's place of residence or unless his lawful mileage and fee for one day's attendance shall be first paid or tendered to him.

b. The referee shall forthwith certify the facts to the judge, if any person shall do any of the things forbidden in this section, and he may serve or cause to be served upon such person an order requiring such person to appear before the judge upon a day certain to show cause why he should not be adjudged in contempt by reason of the facts so certified. The judge shall thereupon, in a summary manner, hear the evidence as to the acts complained of and, if it is such as to warrant him in so doing, punish such person in the same manner and to the same extent as for a contempt committed before him, or commit such person upon the same conditions as if the doing of the forbidden act had occurred with reference to the process of the court of bankruptcy or in the presSence of the judge, sy al soch a 5 in caldo ci

As Amended by the Chandler Act (1938). In a(4), "after" which preceded "having taken" was déleted. The original proviso read: "Provided, that no person shall be required to attend as a witness before a referee at a place outside the State of his residence, and more than one hundred miles from such place of residence, and only in ease his lawful mileage and fee for one day's attendance shall be first paid or tendered to him,"

b. "Forthwith" was added as well as the language in the first sentence beginning "and he." "Him" in the fourth line from the last and “Judge” in the last line respectively replaced "the, court of bankruptcy" and "court," "The court of bankruptcy" in the last clause was an insertion.

Sec. 42. (11 U.S.C. § 70.) Records of Referees

a. The records of all proceedings in each case before a referee shall be kept in the manner as prescribed by the Supreme Court of the United States. has no langleb old as be hon

b. A separate record shall be kept of the proceedings in each case and shall, together with the papers on file, constitute the records of the case.

c. The record of the proceedings shall, when the case is concluded before the referee, be certified to by him and shall, together with such papers as are on file before him, be transmitted to the clerk and shall remain in the office of the clerk as a part of the records of the court.

As enacted by the Act of July 7, 1952, P.L. 456, 82d Cong., 2d Sess., § 13. Previously, records were to be kept "as nearly as may be", in the same manner as records in equity cases, but conformity in several respects was impractical. The Act of 1898 referred to equity records in Circuit Courts, which were abolished in 1911. This reference was not modernized until 1938. b and c stand as amended by the Chandler Act (1938).

b. This originally commenced: "A record of the proceedings shall be kept in a separate book or books."

C. "Book or books containing a" was deleted before "record" by the Chandler Act. "Clerk" was then substituted for "court of bankruptcy." "There" which preceded "remain" was dropped. "In the office of the clerk" was inserted.

Sec. 43. (11 U.S.C. § 71.) Vacancies; Referee's Absence or

Disability

a. Whenever the office of a referee is vacant, or its occupant is absent or disqualified to act, the clerk of the district court in which the territory or any part of the territory served by such referee is located shall immediately notify the Director of such fact.

b. Whenever the office of a referee is vacant, the Director shall recommend to the district judges, the councils and the conference whether a new appointment should be made, and no such appointment shall be made until authorized by the conference.

c. Whenever the office of a referee is vacant or its occupant is temporarily absent or disqualified to act, or whenever the expeditious transaction of the business of the court or courts of bankruptcy may require, the judge, or any one of the judges, may act; or the judge or the chief judge of the district may designate and assign temporarily any referee of the district to act; or the chief judge of the circuit may designate and assign temporarily one or more referees within the circuit to act upon presentation of a certificate of necessity by the judge or chief judge of the district wherein the need arises, or the chief judge of the circuit may order that pending cases be re-referred and future cases referred to one or more referees within the circuit; or the Chief Justice of the United States may designate and assign temporarily a referee from another circuit to act upon presentation of a certificate of necessity by the chief judge of the circuit wherein the need arises. No designation and assignment shall be made with

out the consent of the chief judge or judicial council of the circuit from which a referee is to be designated and assigned. All designations and assignments of referees shall be filed with the clerks and entered on the minutes of the courts from and to which made. The Chief Justice of the United States or a chief judge of a circuit or a judge or chief judge of a district may make new designations and assignments in accordance with the provisions of this subsection, and may revoke those previously made by him.

Section 43 originally read: "Referee's Absence or Disability.-a. Whenever the office of a referee is vacant, or its occupant is absent or disqualified to act, the judge may act, or may appoint another referee, or another referee holding an appointment under the same court may, by order of the judge, temporarily fill the vacancy."

a and b stand as enacted by the Referees' Salary Act (1946). c stands as amended by Act of Sept. 19, 1950, P.L. 790, 81st Cong., 2d Sess. This subdivision, up to the first semicolon, dates from the Referees' Salary Act. The remainder of c as then enacted read: "or another referee holding appointment under such court or courts of bankruptcy may be designated by the judge, or by a concurrence of a majority of the judges where there is more than one judge, and where there is no such concurrence, then by the council, to act; or the council may designate another referee from within the same circuit to act, or the council may order that pending cases be rereferred and future cases referred to one or more referees within the same circuit; or the conference may temporarily assign a referee from another circuit to act."

Sec. 44. (11 U.S.C. § 72.) Trustees; Creditors' Committees; and Attorneys

a. The creditors of a bankrupt, exclusive of the bankrupt's relatives or, where the bankrupt is a corporation, exclusive of its stockholders or members, its officers, and the members of its board of directors or trustees or of other similar controlling bodies, shall, at the first meeting of creditors after the adjudication, or after a vacancy has occurred in the office of trustee, or after an estate has been reopened, appoint a trustee or three trustees of such estate. If the creditors do not appoint a trustee or if the trustee so appointed fails to qualify as herein provided, the court shall make the appointment.

As Amended by the Chandler Act (1938). This originally read: "The creditors of a bankrupt estate shall, at their first meeting after the adjudication or after a vacancy has occurred in the office of trustee, or after an estate has been reopened, or after a composition has been set aside or a discharge revoked, or if there is a vacancy in the office of trustee, appoint one trustee or three trustees of such estate. If the creditors do not appoint a trustee or trustees as herein provided, the court shall do so." Under this language if the trustee did not qualify, a new election had to be held, which resulted in the expense and delay of calling another meeting of creditors.

b. Such creditors may, at their first meeting, also appoint a committee of not less than three creditors, which committee may consult and advise with the trustee in connection with the administration of the estate, make recommendations to the trustee in